The cryptocurrency market is not limited to BTC only. There are many other very good cryptocurrencies, these we call Altcoin. So how can you trade many cryptocurrencies?
The answer is "International Exchange". This platform allows you to buy and sell a variety of cryptocurrencies for a cheaper fee. Today, Blogtienao (BTA) will introduce you Binance cryptocurrency exchange.
The article may be helpful for you: What is trade coin
To trade on an exchange you must know how to place a trade.
Do you know how to place a trade on Binance? If not then Blogtienao will guide you to trade coins on Binance!
What is a trading order?
A trading order is simply understood as an order you use to buy or sell a cryptocurrency. This order is only used on the trading platform. Just like you negotiate a price with a seller when you shop. Exchanges at this time is simply a market for you to buy and sell cryptocurrencies.
Currently, the Binance platform has the order types: Limit orders, limit stop orders, market orders and OCO orders (stop loss-taking).
You are having 7000 USDT. At this time, the price of BTC is 8K3 if you buy immediately, the number of BTC you can buy will not be enough 1 BTC. But you think it will even drop to a price of 7000 USDT.
Now, you only need to place a limit order of 1 USDT and wait for the price to match the order price, now you can buy. But if the price doesn't go down to 7000 USDT then you won't be able to buy BTC.
About the types of orders traded on Binance
- Limit orders, or Limit orders, are used to buy a cryptocurrency at the desired price. Learn more about limit orders here.
- Market orders, or Market orders, are used to instantly buy a cryptocurrency.
- A stop order, also known as a Stop-Limit order, is used to buy or sell a cryptocurrency to a specified price. This price is also known as the price stop or Stop-Price. Learn more about stop limit orders here.
- The stop loss-take profit order is known as the OCO order. This order is simply a combination of a limit and stop limit order. Learn more about OCO orders here.
What order should I choose to trade coin on Binance?
Depending on the case, we will use different commands
- Case 1: You buy and sell a certain currency for the price you want. At this point, the optimal choice is limited order. The downside is that you will not be able to buy when the coin does not go down or cannot be sold if the coin does not rise to your desired price.
- Case 2: You buy right away. If the coin is currently fluctuating strongly. When you place a limit order it will not keep up because it happens very quickly the price changes continuously. To buy now, the command market order is the most reasonable.
- Case 3: You want to sell as soon as the coin reaches the price range you set or you want to buy when it has just reached the price range you set. Limit stop command is reasonable for this case. This order is used to cut losses to avoid excessive losses when the coin plummets. At the same time you buy when the coin has just risen to a certain price range so as not to miss the chance that the coin will grow strongly.
- Case 4: You both want to buy coin at low price and will also buy if the coin rises to the specified price range. Surely many people will wonder "Why are prices still buying in?" Because in order not to miss the opportunity if that coin grows strongly. You want to sell at high prices while also cutting your coin loss. Then stop-loss order (OCO) This will be the best for this case.
Direction of trading coin on Binance
If you have not registered a Binance account, you can view the article hGuide to register Binance floor.
And to be able to practice trading, I hope you prepare some USDT or BTC for your practice, about $ 50 is enough.
Binance trading interface
Access interface transactions
After logging in to your Binance account, go to the section Exchanges -> Basic
Learn the trading interface
(1) Where to display information about the price and transaction volume of the coin you are tracking. Here, I am following BTC
(2) The place to display markets and trading pairs. Currently, the market has markets such as: BNB, BTC, ALTS, USD.
* Current ALTS include: ETH, XRP, TRX
* Current USD includes: USDT, PAX, TUSD USDC, BUSD, USDS
(3) The transaction history that the coin you are tracking
(4) Where to execute the basic trade orders
(5) Good chart price chart.
(6) Buy or sell orders are pending
What is the market?
Market is a collection of buyers and sellers.
For example: The BTC market is a place where buyers and sellers exchange with BTC. Understand as simple as a market. At markets, buyers and sellers exchange goods with money. In the BTC market, buyers and sellers exchange cryptocurrencies with BTC. USD market is exchanged in USD
What is a trading pair?
Pairs are in the form of Coin / BTC or Coin / USDT… (Coin / Market). The front part of the trading pair is the cryptocurrency you can buy or sell, the back part is the currency you will have to pay to buy or sell.
- If you want to buy BTC from USDT, you must place a buy order in the BTC / USDT pair
- If you want to sell BTC to USDT, you must place a sell order in the BTC / USDT pair
- You want to buy Altcoin from BTC, you must place a buy order in the Altcoin / BTC pair
- If you want to sell Altcoin to BTC, you must place a sell order in the Altcoin / BTC pair
How to make trade coins on Binance
I will choose pairs trading in different markets for you to imagine
Step 1: Select the trading pair in the market you want to make. Here I will choose the ADA / USDT trading pair. With this pair, you can buy ADA with USDT and sell ADA to USDT.
Step 2: You only need to enter the price you want to buy or sell and the quantity you want to buy or sell. Then click Buy (Sell) ADA
Step 3: Upon successful order, there will be a notification as shown below. If you want to cancel an order, simply scroll down to the section of the pending transaction
Market order (Market)
Step 1: Also choose ADA transaction but here I will choose in BTC market. Why choose the BTC market? Since I have BTC and switch to Altcoin, I will choose this market. Conversely, if you have an altcoin that wants to convert to BTC, it only needs to be sold on the BTC market.
Step 2: choose Market then enter the quantity you want to buy then press Buy ADA
Step 1: I also choose the ADA trading pair in the BNB market. When you have BNB you want to buy ADA or you want to sell ADA to BNB then you will choose ADA / BNB pair.
Step 2: Import Stop price , and price limit. That is when the coin's price touches Stop price then the floor will automatically place one limited order for the set price you set.
- For buy order: The current price of ADA is 0.002546 BNB. You are waiting for a lower price to buy but you think if the ADA goes up to 0.002560 BNB it will go even further. At this point, you only need to place a buy order stop limit with Price stop is 0.002560 BNB and the limit price> = 0.002560 BNB. As shown below Price Stop is 0.002560 BNB and price limit is 0.002562 BNB. This order means that when ADA price is 0.002560 BNB, the floor will automatically place a buy order at 0.002562 BNB.
- For sell order: The current price of ADA is 0.002546 BNB. You want to sell ADA at a higher price but you think if ADA goes down to 0.002400 BNB it will continue down. You accept the risk of losing 0.000146 BNB / ADA and cutting at 0.002400 to be able to buy back at a lower price. Then you will place a sell order stop limit with scoop price stop is 0.002401 BNB and level price limit 0.002400 BNB. This order means the price of BNB to 0.002401 BNB will automatically place a sell order at the price of 0.002400 BNB.
- For buy order: Stop price <= Limit price
- For sell orders: Stop price> = Limit price
- The more the Limit and Stop Price differ, the easier it is to execute the order. You should set a little difference to be able to match orders in case the price fluctuates sharply.
Stop-loss order (OCO)
We already have an article about this OCO command here.
Through this article I hope you can cultivate the necessary knowledge for yourself. From there, you can master the trade coin on binance and bring the values you desire.
Blogtienao I wish you success!
In the next article, we will explore the causes of the price increase and decrease, then find out a specific analysis method for yourself. Hope you will follow and support IT.
Note: the article is based on basic knowledge, only applies to newbies to help them have the most understandable look, other pro if you have additional comments, please contact Blogtienao (BTA). If you do not understand anything new, join the discussion group below (fb priority)